The British Insurance Brokers’ Association (BIBA) has approved an extension to its exclusive GAP scheme with Jackson Lee Underwriting (JLU) to include its recently launched electric vehicle early termination cover. This extension will be a huge benefit to BIBA members seeking to protect companies supplying electric vehicles (EVs) as part of a corporate salary scheme against the financial penalties of early redemption.
JLU’s exclusive BIBA GAP Scheme, which has been in place since 2012, covers most personal and commercial vehicles and is considered a flagship scheme which BIBA members find consistently valuable and easy to market. The addition of this Electric Vehicle Early Termination extension will allow BIBA members to offer valuable protection for clients seeking to implement an EV salary sacrifice scheme as part of company tax planning, enhanced employee benefits, and Environmental, Social and Governance (ESG) initiatives.
The Early Termination extension protects companies supplying EVs as a part of a corporate salary sacrifice scheme against the financial penalties of early redemption if, for example, an employee resigns, loses their license on medical grounds, or dies whilst in service. The Scheme is underwritten by A+ rated security and is offered to BIBA members at a 25% commission rate.
Nick Mohan, Joint Managing Director at Jackson Lee commented: “The UK Government has committed to net zero by 2050 and part of meeting this pledge is the promotion of EVs. In a move welcomed by businesses a 2% Benefit in Kind will be paid to businesses entering an approved EV salary sacrifice scheme. In response to the demand, we launched our electric vehicle early termination cover to protect businesses joining the greener motoring initiative from risks outside of their control. We’re delighted that BIBA is extending our long running GAP Scheme to include this innovative protection, yet again recognising the quality of our products and the service we provide to its members.”
Mike Hallam, Head of Technical Services at BIBA said: “We’re delighted to be able to offer our members this early termination cover. As ever JLU is ahead of the curve when it comes to spotting market needs and bringing innovative niche insurance products to brokers. For our members this GAP extension enables them to both enhance their portfolio and jump on the opportunity to assist businesses making the move to electric.”